According to the company's routine accounting:
1. First, it is recorded as entertainment expenses, which should be included in the second-level subjects of "operating expenses-business entertainment expenses" or "operating expenses-gift entertainment expenses".
2. In tax practice, the gift business generated by the need of publicity and promotion is treated differently. Purchased goods as gifts are usually used as entertainment expenses, which are deducted before tax according to the prescribed proportion. Self-produced goods used as gifts shall be treated as publicity expenses.
The gift expenditure of enterprises mainly involves three taxes: personal income tax, value-added tax and enterprise income tax.
The recipient of the gift has to pay personal income tax, which is usually withheld and remitted by the giver. Individual income tax is calculated and paid according to the "other income" items stipulated in the individual income tax law, and the tax rate is 20%.
Value-added tax refers to products produced and sold to customers as gifts, which are regarded as sales and subject to value-added tax.
The behavior of enterprises to buy gifts and give them to customers in person belongs to the sales that need to be used as social entertainment, and at the same time, it is deducted before tax according to the provisions of business hospitality.
People's Republic of China (PRC) Individual Income Tax Law is a national legal document of China approved by NPC Standing Committee of China.
The current Individual Income Tax Law of People's Republic of China (PRC) was promulgated on June 30th, 20 1 1, and will come into force on September 30th, 201/. The Individual Income Tax Law, the Regulations on the Implementation of the Individual Income Tax Law (1994128 October), the Law on the Administration of Tax Collection (5438+0 promulgated on 28 April 2006) and the Regulations on the Administration of Individual Income Tax Collection constitute the main legal basis of China's current individual income tax law.
Baidu Encyclopedia-People's Republic of China (PRC) Individual Income Tax Law